RBL Bank Results: Net Profit Reaches Rs 214 Crore Amid Improved Asset Quality
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The Bank has a strong digital offering with sizeable operation under digital payments space.
Bank-ltd-209068">RBL Bank announced its unaudited financial results for the quarter ended December 31, 2025, reporting a Net Profit of Rs 214 crore. This bottom-line figure was notably impacted by a one-off pre-Tax expense of Rs 32 crore, stemming from wage definition revisions under the New Labour Codes effective November 2025. Despite this, the bank’s operating profit (excluding prior one-off gains) showed robust health, growing 7 per cent year-on-year and 25 per cent sequentially to reach Rs 912 crore. The Net Interest Income (NII) rose to Rs 1,657 crore with a steady Net Interest Margin (NIM) of 4.63 per cent.
The bank’s balance sheet expansion was characterised by a 14 per cent year-on-year growth in Net Advances, totalling Rs 1,03,086 crore. This growth was driven by a strategic shift toward secured retail assets and commercial banking. Specifically, secured retail advances surged by 24 per cent year-on-year, while the wholesale segment grew by 21 per cent, led by a 30 per cent jump in commercial banking. The retail-to-wholesale mix now stands at 59:41, reflecting a diversified loan portfolio that balances aggressive commercial growth with stabilised retail lending.
On the liability side, Total Deposits reached Rs 1,19,721 crore, marking a 12 per cent increase from the previous year. A key highlight was the growth of "granular deposits" (those under Rs 3 crore), which grew faster than the overall average at 15 per cent year-on-year, now accounting for 51.5 per cent of the total deposit base. While the CASA ratio stood at 30.9 per cent, the bank's focus remains on high-quality, stable retail funding. Furthermore, operational efficiency improved significantly, with the cost-to-income ratio dropping to 66.3 per cent from 70.7 per cent in the previous quarter.
Asset quality showed marked improvement during the quarter, with the Gross NPA ratio falling to 1.88 per cent from 2.32 per cent in the preceding quarter. Net NPA also edged lower to 0.55 per cent, supported by a strong Provision Coverage Ratio of 93.2 per cent. RBL Bank remains well-capitalised to fund future growth, maintaining a total capital adequacy ratio of 14.94 per cent and a healthy average Liquidity Coverage Ratio (LCR) of 125 per cent. The bank also continues to expand its physical footprint, now operating 1,921 total touchpoints across India.
About the Company
RBL Bank is one of India’s leading private sector banks, with a legacy dating back to 1943. Headquartered in Mumbai, the Bank has evolved into a dynamic financial institution offering a comprehensive suite of banking products and services catering to individual customer segments ranging from small farmers to HNIs; small and medium enterprises, large corporations and governments with a full range of banking, investment management, trade and other financial solutions. The Bank has a strong digital offering with sizeable operation under digital payments space. With a strong focus on innovation, customer-centricity and digital transformation, RBL Bank serves over 15.11 million customers through a robust network of 580 branches, 1341 business correspondent branches (of which 291 banking outlets) spread across 28 Indian states and union territories.
Disclaimer: The article is for informational purposes only and not investment advice.